The world economy is still full of uncertainty, especially after the referendum on the United Kingdom out of the European Union or known as Brexit. However, the flow of foreign funds in droves thus entered into the country.
The Executive Director of the Department of Economic and Monetary Policies of the Bank Indonesia (BI) Juda Agung explains, post Brexit occurs, the global economy and some of the countries directly affected. Among them are the United States, European Union, China, and India.
Specific to the US Central Bank, The Federal Reserve (The Fed) start re-thinking to raise rates of reference. There is concern, when it's done then encourage the strengthening of the U.S. dollar is too sharp and thus worsen the US economy.
So the likely increase in interest rates will be carried out next year. This means that there is an uncertainty that will still be haunting in quite some time into the future.
In these conditions, it turns out investors chose instead to developing countries for the placement of funds. One of these is Indonesia.
"If this kind of global, capital inflow is now the choice in emerging markets which. Indonesia eventually becomes interesting destinations. Not just economic fundamentals from the side but economic prospects going forward, "said Juda in current economy seminar in the office of The Ministry Of Economy Coordinator, Jakarta, Monday (25/7/2016).
Side of the economic fundamentals, Juda explains, inflation still remains the realization that awake until June 2016. Although there is a risk of food price movements, but as of the end of the year will still be on the level of 4%. "Inflation is still in the range of 4%," he added.
Then the deficit deal went in the quarter II-2016 estimated 2.1% to GDP. Whereas in 2016 accumulation estimated at 2.2% to GDP.
"Macro fundamentals we look awake, then give the perception is positive for the market," he said.
In addition, the implementation of tax forgiveness programs or tax amnesty also encourage a positive perception. Therefore up to July 18, 2016, the flow of incoming foreign funds have reached Rp 110 trillion.
"The market is indeed not so optimistic how many will go but will provide a positive impact towards fiscal and funds used for financing development and the strengthening of the rupiah," stated Juda.
